Exposure to fluctuations in regional automotive markets
First written in FY2018-Q3. 15 of 33 entries say "Worsened", first in FY2018. Latest entry: 2026-10-23.
Moriroku Company moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2019: 36 of 68 companies on the "Worse" side.
10 other companies' latest entry also says "Restated".
- FY2026WorsenedAnnual report
「In the automotive industry, the Group's core business, the competitive environment has become increasingly challenging due to changes in automakers' production trends and vehicle mix, the contraction of the domestic market, slowing growth in the EV market and improving competitiveness among manufacturers in emerging markets, including China.」
While sales by Japanese automakers remained weak in China and Asia, the contraction of the domestic market, slowing EV-market growth and improving competitiveness among manufacturers in emerging markets further intensified the competitive and demand environment. - FY2026-H1Reduced tariff uncertainty but continued weak sales in China and AsiaAnnual report
「The agreement reached in tariff negotiations with the United States eased the uncertainty surrounding the outlook to some extent. However, sales by Japanese automakers in China and Asia remained weak, and the business environment surrounding the Group continued to be difficult.」
An agreement in the U.S. tariff negotiations eased uncertainty to some extent, but weak sales by Japanese automakers in China and Asia continued, leaving the business environment difficult. - FY2025WorsenedAnnual report
「In China, sales by Japanese automakers continued to languish due to the accelerating shift toward EVs and competition with local manufacturers, while automotive sales in Asia also declined due to political and economic conditions. In addition, the outlook remained uncertain due to downside risks to economic growth arising from U.S. tariff measures.」
Weak sales by Japanese automakers in China and declining sales in Asia continued. The disclosure also identifies downside risks to economic growth from U.S. tariff measures as a new source of uncertainty. - FY2025-H1WorsenedAnnual report
「During the current interim consolidated accounting period, the automotive industry remained in a difficult business environment. In China, sales by Japanese automakers declined due to the shift toward EVs and price competition with local manufacturers, while automotive sales also fell in Asia due to political and economic conditions. Meanwhile, resilient demand in Japan and North America provided support, and the yen continued to trend lower.」
Weak sales by Japanese automakers in China continued due to the EV shift and price competition with local manufacturers, while sales also declined in Asia. Resilient demand in Japan and North America provided support, resulting in a difficult market environment with regional differences. - FY2024-Q3Semiconductor shortage impact largely resolved, but regional differences and cost pressures continueAnnual report
「During the first nine months of the current fiscal year, the impact of semiconductor supply shortages was largely resolved, automotive production moved toward normalization and the industry remained on a recovery trend. However, the rapid acceleration of the shift to EVs in China, elevated raw-material and energy prices, rising labor costs and labor shortages, particularly in North America, continued, and the outlook remained uncertain.」
The impact of semiconductor supply shortages was largely resolved, with production normalizing and the industry recovering. However, uncertainty continued due to China's rapid shift to EVs, elevated raw-material and energy prices, rising labor costs and labor shortages in North America. - FY2024-Q2Continued recovery with persistent uncertaintyAnnual report
「During the first six months of the current fiscal year, automotive production moved toward normalization and the industry remained on a recovery trend against a backdrop of easing semiconductor supply shortages. However, weak sales by Japanese automakers in China, elevated raw-material and energy prices, rising labor costs and labor shortages, particularly in North America, continued, leaving the outlook uncertain.」
Automotive production recovered as semiconductor shortages eased, while weak sales by Japanese automakers in China and elevated raw-material and energy prices, labor costs and labor shortages in North America persisted. - FY2024-Q1Easing semiconductor shortages alongside regional differences and cost pressuresAnnual report
「During the first quarter of the current fiscal year, the semiconductor supply shortage was gradually easing, raising expectations that automotive production would normalize. However, recovery varied by region, and conditions remained uncertain, with Japanese automakers experiencing weak sales in China. The yen continued to trend lower, while elevated raw-material and energy prices, rising labor costs and labor shortages, particularly in North America, also persisted.」
The disclosure pointed to easing semiconductor shortages and expectations for normalized automotive production, while weak sales in China, elevated raw-material and energy prices, rising labor costs and labor shortages in North America continued. Regional differences in recovery and cost pressures coexisted. - FY2023-Q3Production recovery with continued cost pressuresAnnual report
「During the first nine months of the current fiscal year, the automotive industry remained in difficult conditions as the global semiconductor shortage and lockdowns in China prolonged production adjustments by automakers. Production was beginning to recover, but the risks of semiconductor shortages and renewed COVID-19 outbreaks remained, while higher raw-material and energy prices added to the uncertainty surrounding the outlook. Naphtha prices, which serve as a benchmark for chemical product pricing, were trending downward but remained at a high level.」
Automaker production was beginning to recover, but semiconductor shortages, the risk of renewed infections and higher raw-material and energy prices continued. Naphtha prices had begun to decline but remained high. - FY2023-Q2Market recovery alongside new cost pressuresAnnual report
「During the first six months of the current fiscal year, the automotive industry remained in difficult conditions as the global semiconductor shortage and lockdowns in China prolonged production adjustments by automakers. Production was beginning to recover, but the risks of semiconductor shortages and renewed COVID-19 outbreaks remained, while soaring resource and energy prices added to the uncertainty surrounding the outlook.」
Although automaker production was beginning to recover, semiconductor shortages and the risk of renewed infections remained, compounded by higher resource and energy prices. The market environment had shifted to one combining recovery with new cost pressures. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the automotive industry remained in difficult conditions as the global semiconductor shortage and the impact of lockdowns in Shanghai, China, amid renewed COVID-19 infections further disrupted supply chains and prolonged production adjustments by automakers.」
The global semiconductor shortage and the Shanghai lockdown exacerbated supply-chain disruptions, prolonging production adjustments by automakers. - FY2022-Q3Improving component shortages but continued uncertaintyAnnual report
「During the first nine months of the current fiscal year, the automotive industry remained in difficult conditions, with automakers reducing production due to the global semiconductor shortage and delays in procuring components from Southeast Asia. Component shortages were gradually improving, but the outlook remained uncertain, partly due to the emergence of new COVID-19 variants.」
Difficult conditions involving automaker production cuts continued, although component shortages were gradually improving. The emergence of new variants meant that the uncertain outlook also persisted. - FY2022-Q2WorsenedAnnual report
「During the first six months of the current fiscal year, the automotive industry remained in difficult conditions, with automakers reducing production due to the global semiconductor shortage and supply-chain disruptions caused by the spread of COVID-19.」
Although production at major customers in China and Asia recovered, the global semiconductor shortage and supply-chain disruptions led automakers to reduce production, resulting in a more difficult market environment. - FY2022-Q1Recovery continuing but slowingAnnual report
「During the first quarter of the current fiscal year, the automotive industry continued to recover from the impact of COVID-19, and global demand recovered steadily. However, the pace of recovery slowed somewhat due to factors including renewed outbreaks of variant strains and the global semiconductor shortage.」
Global demand continued to recover, but the pace of recovery slowed due to renewed outbreaks of variant strains and the semiconductor shortage, updating the regional market environment. - FY2021-Q3Market recovery alongside new supply concernsAnnual report
「Although global demand for the full year declined from the previous year, demand recovered in major markets including China and North America. Naphtha prices, which serve as a benchmark for chemical product pricing, also followed an upward trend, supported by petrochemical demand in China. Meanwhile, concerns have emerged over the impact of renewed outbreaks of COVID-19 in various countries and a global semiconductor shortage.」
Global demand fell below the previous year, while major markets such as China and North America recovered. The disclosure also newly identifies concerns over renewed COVID-19 outbreaks and the global semiconductor shortage. - FY2021-Q2Update on regional market recoveryAnnual report
「In the automotive industry, the Group's principal business area, the market recovered rapidly in China and sales improved in North America and Japan, while recovery remained slow in some parts of Southeast Asia.」
The disclosure shows a shift from globally weak demand through the previous quarter to rapid market recovery in China and improving sales in North America and Japan. Recovery remained delayed in parts of Southeast Asia, resulting in a market environment with regional differences. - FY2021-Q1WorsenedAnnual report
「In the automotive industry, the Group's principal business area, plants in various countries suspended operations or reduced production, resulting in a global decline in vehicle sales. The chemicals industry was also affected by weaker demand for raw materials and falling naphtha prices.」
Automotive markets experienced plant shutdowns, production cuts and a global decline in sales, while the chemicals industry also saw weaker demand for raw materials. The previously existing risk of weak markets materially worsened on a global scale. - FY2020WorsenedAnnual report
「In the automotive industry, the Group's principal business area, domestic automotive production declined following the consumption-tax increase, while the Chinese and emerging markets weakened and the U.S. market also lacked strength, resulting in sluggish global demand. The business environment has become increasingly challenging due to automakers suspending plant operations and reducing production in response to the novel coronavirus, as well as the impact on supply chains.」
In addition to weak automotive demand in Japan, China, emerging markets and the United States, automaker plant shutdowns, lower production and supply-chain disruptions further broadened the deterioration in market conditions. - FY2020-Q3WorsenedAnnual report
「During the first nine months of the current fiscal year, global automotive demand remained sluggish as the Chinese market declined amid prolonged trade friction between the United States and China, emerging markets including India slowed, and the U.S. market lacked strength. In Japan, 2019 new-vehicle sales fell below the previous year due to the consumption-tax increase in October and a succession of natural disasters.」
The deterioration in the automotive market spread globally and to Japan, with a decline in China, slowing emerging markets, a lack of strength in the U.S. market and Japanese new-vehicle sales falling below the previous year. - FY2020-Q2WorsenedAnnual report
「Overseas, new-vehicle sales in China declined as consumer sentiment weakened due to trade friction between the United States and China. In North America, sales fell below the previous year, particularly for sedan models, while India and Southeast Asia also experienced weak sales.」
In addition to declining new-vehicle sales in China and below-year-ago sales in North America, India and Southeast Asia also reported weak sales, indicating a broader deterioration in regional automotive markets. - FY2020-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the domestic automotive industry saw no rush demand ahead of the consumption-tax increase, and new-vehicle sales remained flat. Overseas, although some Japanese automakers in China performed steadily, new-vehicle sales declined as consumer sentiment weakened. In North America, sales fell below the previous year, particularly for sedan models, while Southeast Asia also showed signs of stagnation.」
In addition to declining new-vehicle sales in China, North America fell below the previous year and Southeast Asia stagnated. Japan remained flat, indicating that the deterioration in the regional market environment had spread beyond the previously weak Asian markets. The risk materialized as an actual decline or stagnation in market sales. - FY2019Annual update on market trendsAnnual report
「With respect to the automotive market, which is the Group's principal business area, emerging markets drove the market while new-vehicle sales in the United States and Japan remained broadly flat. In China, however, new-vehicle sales declined year on year due to the backlash from rush demand ahead of the end of tax reductions for small vehicles, amid signs of an economic slowdown.」
The disclosure notes that China posted a year-on-year decline while the United States and Japan remained flat, and summarizes that emerging markets drove the market, updating the regional market environment on an annual basis. - FY2019-Q3WorsenedAnnual report
「While new-vehicle sales in Japan and the United States remained broadly flat, sales in China declined year on year against a backdrop of slowing economic growth and concerns over trade friction.」
Japan and the United States remained flat, while China's market deteriorated from slower sales to a year-on-year decline, updating the regional automotive market environment. - FY2019-Q2WorsenedAnnual report
「In the automotive industry, to which the Group belongs, new-vehicle sales in Japan and the United States were somewhat weak, but sales continued to increase in Asia and remained firm. In China, sales remained sluggish against a backdrop of slowing economic growth and intensifying trade friction, although Southeast Asia, including Thailand, continued to expand.」
The disclosure states that new-vehicle sales were weak in Japan and the United States, while sales in China remained sluggish amid slowing economic growth and intensifying trade friction. In contrast, sales continued to increase across Asia, with Southeast Asia maintaining its growth trend. - FY2019-Q1Update on regional market trendsAnnual report
「In the automotive industry, U.S. sales bottomed out, although policy rates were raised in June. In China, sales also slowed following the end of tax reductions for small vehicles. Growth continued in Thailand in Southeast Asia, while the Japanese market recovered gradually.」
While confirming that sales in China slowed following the end of tax reductions for small vehicles, the disclosure also notes that U.S. sales bottomed out, growth continued in Thailand and Japan recovered gradually, updating the regional market trends. - FY2018WorsenedAnnual report
「With respect to the automotive market, which is the Group's principal business area, the outlook remains uncertain due to factors including higher policy rates in the United States and the backlash from the end of tax reductions for small vehicles in China at the end of 2017. We expect difficult conditions to continue over the medium to long term.」
In addition to the previous description of regional market trends, the disclosure cites higher policy rates and the backlash from the end of China's tax reductions, and explicitly states that the outlook is uncertain and conditions are expected to remain difficult over the medium to long term. - FY2018-Q3First statedAnnual report
「Although automotive sales in the United States slowed amid interest-rate hikes and other factors, new-vehicle sales in China remained strong and increased steadily, partly due to the continued tax reductions for small vehicles. Automotive sales in Japan also recovered gradually, while growth continued in Asia, particularly in Thailand.」
The automotive market, which is closely related to the core business, is described by region, with a slowdown in the United States and recovery or growth in China, Japan and Thailand. The slowdown in U.S. sales was treated as an event that had actually occurred.